What We Could Learn from Asia? The Comparison of European and Asian Model

of Cluster Policy

Martina Sopoligova, Tomas Bata University in Zlin, Czech republic

Parallel Session 1.5: Accelerating Cluster Growth in Asian Countries

Opposite models of cluster policy and their differences

European model

Asian model - cases of Japan, China and Vietnam

Comparison Asian model with European model

Opposite models of cluster policy

Which fundamental differences characterize these approaches?

political relevance

finance-related difference

structures of decision-making

- regional level (Belgium, Spain), national level (France, Norway),

regional and national level (Austria, Finland, Sweden)

- bottom-up approach

- main objectives

- supporting already existing clusters

THE EUROPEAN MODELThe European model

&J

• 2001 – the first cluster plan

• top-down approach complemented by bottom-up initiatives

• small businesses

Case of Japan

• strong government policy

• foreign funds

• absence of local dialog between enterprises • weakness of the single-core structure

Case of China

• strong economic growth

• dominant public sector

• craft villages with national investment

• government attracts foreign-owned firms

• low labor costs

Case of Vietnam

• preference for a top-down approach by local governments as regional policy

• basic support of government

• “anchor firms” play a key role in promoting goods and services

• weakness of innovation capability

The Asian model

Aspects of ASIAN MODEL according to the World Bank:

1. network governance operations

2. the supplying of specific public goods by private companies

3. well-organized cluster management

Type of agglomerations:

1. agglomerations of traditional companies

2. industrial parks created and run by government

3. agglomerations of foreign companies

4. agglomerations of small businesses

5. craft villages

EUROPEAN MODEL ASIAN MODELThe rule is bottom-up Always a top-down approach

Top-down is exceptional Combines the top-down approachwith the bottom-up approach

National policy, and/or regional policy

Local governments, regional policy

Government often acts as a catalyst and mediator

Government sets priorities, formulates vision for the future,

invites „anchor companies“

Clusters are not created from scratch (the very beginning)

Creating completely new clusters

References:Yusuf, S., Nabeshima, K., Yamashita, S. (2008), Growing Industrial Clusters in Asia. Serendipity and Science. World Bank.Ganne B., Lecler, Y. (2009), From Industrial Districts to Poles of Competitiveness.Kuchiki, A., Tsuji, M. (2004), Industrial Clusters in Asia: Their Coordina-tion and Competition, Institute of Development Economies/JETRO.Chang, H.-J. (2006), Industrial Policy in East Asia – lessons for Europe, EIB Papers.Lall, S. (2006), Industrial policy in developing countries, International Handbook on Industrial Policy.

THANK YOU!